Rating agency Crisil has reaffirmed 'GVC Level 1' rating to telecom service provider Bharti Airtel which indicates that the company's capability with respect to corporate governance and value creation for all its stakeholders is the highest.
The rating reflects Bharti Airtel’s outstanding corporate governance practices. The company has a well-experienced and very competent board of directors, with expertise across global finance, telecommunication, banking, administrative services and consulting, Crisil said in a statement.
The board has demonstrated exemplary practices in corporate governance, focusing on strategic oversight and business performance, processes, systems, audits, and disclosures, and effective functioning of its various sub-committees.
The Bharti Airtel board provides strong strategic direction and management oversight aided by the meaningful contribution of the independent directors to the board’s functioning, and the strong capabilities of Bharti Airtel’s operating management. The company has demonstrated commitment to continuously improve its processes in line with the increasing complexity of its business, it added.
Another feature of good corporate governance at Bharti Airtel is the fact that independent directors meet separately before the board meetings. These meetings are presided by a lead independent director.
This in Crisil’s opinion gives independent directors a platform to identify areas where they need more clarity or information, and then put this before the board or management. The independent directors also meet with statutory auditors without the presence of executive management.